The company’s Mobility Group also recorded “robust growth,” with sequential revenue rising by 19 percent.

“We are bullish on netbooks and the Atom processor,” Otellini said during a conference call with investors. “The netbook market is alive and well. It continued to grow nicely from Q2 to Q3 – and will grow again in Q4.”

However, Otellini noted that the traditional notebook market remained one of Intel’s “primary” drivers of revenue growth and emphasized that notebooks currently “enjoyed” a higher share than desktops.

Otellini also commented on his expectations for Intel’s Nehalem-based servers. He said that companies have expressed interest in replacing 8 or 9 servers with a single Nehalem Xeon unit.

He explained that Xeon servers would allow businesses to improve system flexibility while significantly reducing energy consumption.

In addition, Otellini opined that Intel’s Nehalem-based servers could one day “encroach” on the relatively small RISC [server] market.

Finally, Otellini confirmed that Intel’s NAND Flash team was on the right path to creating a sustainable business with “good value” components and algorithms. He added that future platform “ideas” would utilize advanced NAND Flash and SSD technology.